BAKU, Azerbaijan, Feb.9. The Central Asia Regional Economic Cooperation (CAREC) Program countries need to reduce the remaining barriers to cross-border trade, reads the article published on the Asian Development Bank’s (ADB) website, Trend reports.
CAREC Program comprises 11 member countries: Afghanistan, Azerbaijan, People’s Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.
“There is still substantial untapped potential for expanding mutually beneficial trade and investment across borders in the CAREC region. Three earlier CAREC studies that informed the Trade and Investment Facilitation Partnership Agreement (CARTIF) concept identify a range of persistent barriers to cross-border trade and investment flows in the region, including (i) tariffs and nontariff measures on trade in goods, (ii) differences in service market regulations, (iii) limited recognition of standards and conformity assessments, (iv) restrictions on the movement of businesspeople and service providers, and (v) various domestic obstacles that increase costs and uncertainty for traders and investors. Hence, tariffs are not addressed by CARTIF’s Initial Protocols because they warrant a gradual/differentiated approach,” reads the article.
Complementary evidence from the CAREC study on transit trade facilitation in Azerbaijan, Kazakhstan, and Uzbekistan, and from the ADB study on trade and transport facilitation along CAREC corridors, highlights persistent legal, regulatory, institutional, and infrastructure-related barriers that impede transit trade in the three countries and constrain international shipments along the corridors.
“Together, these findings point to the need for increased efforts by CAREC countries to reduce remaining barriers to cross-border trade and investment. The empirical assessment of different configurations of a CAREC free trade agreement further indicates that enhanced facilitation of cross-border trade and investment can generate considerable economic gains for CAREC countries, particularly for landlocked economies,” the article says.
On 20 November 2025, the 24th Ministerial Conference of the CAREC Program adopted the Bishkek Declaration officially launching negotiations on the CAREC Trade and Investment Facilitation Partnership Agreement (CARTIF). This marked an important milestone in CAREC countries’ efforts to advance regional economic cooperation and integration in trade and investment.
CARTIF builds on more than 2 decades of collaboration under the CAREC Program, including progress achieved through CAREC Strategy 2030 and the CAREC Integrated Trade Agenda 2030, as well as the implementation of international agreements and conventions such as the World Trade Organization (WTO) Trade Facilitation Agreement. It aims to establish an inclusive, transparent, and flexible regional economic partnership to facilitate cross-border trade and investment.